The Importance of Place
(How to choose the best location for your /office/retail business.)
Any business in search of a professional office, or retail, location will benefit from a discussion on just what to evaluate in that process of choosing the "right" place.
As an initial consideration, is your office primarily for the business "staff" or for its clients?
If the office is primarily to provide a shared workspace for business staff and clients will not be visiting on a regular basis, you will not be as concerned with benefits such as ample parking, handicap accessibility, or updated common areas such as hallways and restrooms. On the other hand, if the primary purpose for seeking office space is to provide a place for clients to visit your business, then free and ample parking, visibility, common areas, and accessibility of your office location should be your primary concern. Distinguishing between these two primary purposes is not always cut-and-dry. However, and in many instances, convenience for both the business staff and its clients must be considered equally.
With this important consideration in mind, here are some additional questions you ought to ask yourself when looking for the best location for your business:
- Is the building/site attractive, or sufficient, for both office staff and clients?
- Is the building easy to find and easy to direct clients to the location?
- Is there appropriate and ample (and or free) parking?
- Is there an appropriate conference room (if desired) and how is it reserved/used?
- Is the building/site open six days a week (or more) and is adequate heating/ventilation and/or air conditioning service available for those same days?
- Is there an office/business space, in terms of size and configuration that serves the needs of your business?
- Do you need or wish to have a kitchen with microwave/refrigerator/disposal?
- Are there trash and cleaning services included in the monthly rent payments?
- Is there onsite management/maintenance personnel?
- Is the building and site fully Handicap Accessible? Elevators? Ramps? Parking?
- Are there food/restaurants in the building or nearby?
- Consider the quality of finishes in you suite and in the common areas.
- Consider what types of tenant improvement allowance and/or free rent is available.
- Are there competitive phone/cable services available?
- Is IT wiring/cabling affordable in the area/building?
- Are there furniture moving services available to you?
- Are lease terms (duration) and rates (amount per square foot) appropriate for the market and the location?
- Are there special construction features? For instance, Parker Station has 10 foot high ceilings, smaller interior wall depth (Parker Station has interior wall depth dimensions of 4" which is over an inch smaller then is typically found in older office buildings and, therefore, allows for more useable interior office space), sound proofing, individual thermostat control for each office suite, kitchens/plumbing, phone/computer/cable TV services, tinted south/west facing windows, and taller than industry standard interior doors.
- If you are a potential retail tenant, are there community events and other activities (i.e., Parker Days, BBQ festival), that will garner greater visibility to large crowds in the location you are considering?
- Is there potential, within the same building, to expand to a larger space or reduce to a smaller space should your needs change during your lease term? Will someone else rent the same space for the same money? As we all know, life is unpredictable - if there is a reason you need to vacate your leased premises, whether related to personal issues or the success of your business (may be you are growing at a record rate), finding another tenant to easily re-rent your space can significantly minimize losses, if you wish to terminate your lease agreement.
- Is the rent being charged based on a "full service" rate or an "NNN" rate? What is the difference? Retail rental rates are generally figured at a base rental amount per square foot, and then all of the Common Area Maintenance costs are added to this amount. Common Area Maintenance (CAM) includes such costs as real estate taxes, insurance, landscaping services, snow removal, roof repair, parking lot repair/maintenance, irrigation operation, sign maintenance, lighting service, water, utilities, general maintenance and a sundry of other building and site
related expenses that are then pro rated and assessed to each of the retail tenants by the Landlord.
In the case of commercial office tenants the rent per square footage on an annual basis is generally charged as a "full service" amount, which will have a CAM "stop", or base year. These CAM charges/expenses are then included within that same amount per rentable square footage (which means the triple net, NNN, amount is then $12.00 per rentable square footage plus the CAM expense of $9.00 per rentable square foot, if the full service rentable square footage amount is $21.00).
At Parker Station, the "full service" rental rate amount is generally between $21.00 and $23.00 per rentable sq. ft., depending on length of the lease term, proposed tenant related improvements, location within our building and type of use by the proposed tenant. Within that amount would be a base year, which is the first year of the Lease Agreement, of $9.00 per rentable square footage for CAM expenses. This will mean that in future years the tenant will have exposure for CAM expense increases, on a pro-rated basis, if they should occur and then assessed by the Landlord. A commercial office tenant should spend some time evaluating the physical condition of an office building, the history of the CAM expenses as to recent increases, any proposed future CAM increases and determine the likelihood of any major CAM increases for such office building asset. Clearly, a building/site that has been in operation a few years will allow for a better predictability of the CAM expenses to be charged by the Landlord to the Tenant.
Choosing an office location may be one of the most important decisions you make for your business. Your efficiency, visibility, and ultimately the success of your business can depend on your choice of office location.
When considering Parker Station, please ask all these questions and more. You will readily discover that Parker Station has the perfect balance of visibility, reasonable rental rates, superior tenant finishes, kitchens in every suite, well-maintained common areas, conference rooms, ample tenant and visitor parking, and onsite management, among countless other benefits (for instance, there is no other office location in the Greater Parker community that has the amount of significant public bronze art).
We hope this information is helpful in the search for a home for your business. Please contact us to schedule your showing of Parker Station today!